Coles Ethical Audits Cost Growers Millions Annually

Fresh produce suppliers face significant financial strain to satisfy retailer reporting requirements in Australia.

Updated on Oct. 27, 2026 in Organic Food

Isometric editorial illustration of a wooden crate of citrus fruits on a steel surface, symbolizing agricultural compliance costs. — Australian fruit growers incur over $2 million in annual costs to satisfy mandatory ethical audits required by major retailers like Coles. AI Illustration. Upload story photo >

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Should large companies be required to pay the compliance costs they impose on their small suppliers?

Queensland Fruit & Vegetable Growers (QFVG) estimates that fresh produce suppliers incur $2.3 million in annual costs due to Coles Group ethical audits. These expenses arise as smaller growers manage the administrative burden of compliance to meet the standards set by large retailers.

Why it matters

Legislation often ignores the indirect compliance costs pushed onto smaller supply chain partners. This shift in reporting burdens forces family-owned businesses to absorb fees and dedicate significant staff time to satisfy large-company mandates.

Coles Group reported conducting 346 ethical audits on produce suppliers annually. The Modern Slavery Act 2018 applies to businesses with a turnover exceeding $100 million, covering 2,999 large entities.

The players

QFVG

Queensland Fruit & Vegetable Growers is a peak industry body representing the interests of fresh produce farmers in Australia.

Coles Group

Coles Group is a major Australian retailer that operates supermarkets and conducts ethical audits of its supply chain partners.

Senate Select Committee on Productivity

The Senate Select Committee on Productivity is a parliamentary body that examines economic performance and the impact of government regulation on Australian industry.

The details

Growers must pay for individual audit fees and divert staff hours to complete the paperwork required by large supermarket chains. While regulatory impact statements for the Modern Slavery Act assess costs for large corporations, they fail to account for the financial load carried by the smaller businesses within those supply chains.

The Modern Slavery Act was enacted in 2018.
Growers face estimated audit costs of $2.3 million on an annual basis.

Culture Shift

The introduction of the Modern Slavery Act 2018 has fundamentally altered the compliance landscape for businesses, pushing intense reporting requirements onto even the smallest agricultural producers. This shift highlights a broader societal tension between ethical supply chain mandates and the economic sustainability of family-owned farms.

Farmers face ongoing pressure to balance these administrative costs against their narrow profit margins. These expenses may ultimately influence the prices or availability of fresh produce as growers manage the time and money required for compliance.

The takeaway

Smaller agricultural businesses should investigate whether collective bargaining or industry-led audit standardisation can help reduce individual compliance costs. Streamlining reporting processes remains essential for maintaining the viability of local family farms within large retail networks.